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HomeMy WebLinkAbout2/3/2026 Item 7a, Avakian and Hyfield - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum City of San Luis Obispo Council Agenda Correspondence DATE: February 3, 2026 TO: Mayor and Council FROM: Greg Avakian, Parks and Recreation Director Prepared By: Devin Hyfield, Parks and Recreation Manager VIA: Whitney McDonald, City Manager SUBJECT: ITEM 7a – LAGUNA LAKE GOLF COURSE PROGRAM OPERATIONS AND MAINTENANCE OVERVIEW STUDY SESSION Staff received the following questions regarding the Laguna lake Golf Course program operations and maintenance overview study session. The questions are below with staff’s response shown in italics: 1. How many identifiable individual users used the golf course each year? What is the per capita general fund subsidy per golfer? The Golf Course tracked 5,011 unique annual users in 2024 -2025 (which includes the Cal Poly Kinesiology quarterly classes); however, this does not include the community partnership groups which utilize quarterly rosters for tracking the number of users: - SLO High School: 15-17 on season roster (fall and spring) - Morro Bay High School: 15-20 on seasonal roster (fall and spring) - Laguna Middle School: 60-80 on roster (fall) - SLO Academy School: 12-15 on seasonal roster (fall) - First Tee Program: 25 on seasonal roster (fall, winter, spring) - Special Olympics: 20 on seasonal roster (fall, winter, spring) Unfortunately, it is not feasible to accurately identify a per capita expenditure, or General Fund subsidy, per individual user due to the software system capability and the variety of community partnerships that utilize group rate fee structures or full facility reservations for rentals and tournaments. The 5,011 unique users identified for 2024-2025 are incorporated in the annual Total Rounds of 24,494. However, the other group uses are not tracked per player but by group impact to the course, such as a half or full-day rental. If the total rounds of 24,494 uses are divided within the FY 2024-25 subsidized amount from the General Fund of $459,140 results in approximately $18.74 per play. Laguna Lake Golf Course Program Operations and Maintenance Overview Study Session Page 2 2. What percentage of the LLGC 5,000 unique golfers per year are City of SLO residents? Unfortunately, the tee time reservation system does not track zip code s for daily transactions and staff are not able to accurately track the resident vs. non -resident uses. The majority of the players from the partnership user groups are local residents as they attend the local schools, including the majority of First Tee as other courses host their own First Tee (e.g., Sea Pines in Baywood). Additionally, the Cal Poly Kinesiology courses are considered ‘residents’ as they attend the university yet their permanent addresses may reflect out of the area. 3. Are the groups charged by group, or do the individuals in the group get charged? The majority of the organized groups (schools, teams) purchase “Play Pass Cards” (10 plays) which provide a 10% discount on daily play rates and each organization varies in how they institute payment to the City. As an example, Cal Poly Kinesiology has each student purchase the passes individually. Whereas, SLO High School, Laguna Middle School, and SLO Classical Academy are charged a one-time use fee per season for their class uses and standard rates for tournaments. First Tee is a non-profit organization that promotes youth development and is partnered with thirteen central coast golf courses. The City does not charge First Tee a use rate for its weekly uses of the driving range or putting area, and charges $3/round for play outside of the scheduled times. First Tee Tournaments are charged standard rates when hosted at the course. Special Olympics is provided use of the driving range during their Spring season at no cost. For tournaments, a course reservation fee (similar to a park or room reservation fee) is charged and a group rate is provided and charged based on the nu mber of players, golf cart use, and if driving range is included. 4. How do we calculate the subsidy per user at the course given this nuance with groups? It is difficult to accurately determine a subsidy when considering groups, as different rates apply for certain groups. Non-profit organizations, such as Special Olympics and the First Tee program , are provided discount rates based on being a non-profit community group. The majority of the groups facility use is for the driving range and putting areas at no charge and are programed during lower use times. If First Tee members utilize the course for full play, they are provided with a discounted rate and scheduled during non-peak times. For school groups, they are assessed a seasonal fee based upon their group size and impact to the course. These groups are typically charged $500 per season per user group. This fee covers access to the driving range, and lim ited course access during non-peak times. Laguna Lake Golf Course Program Operations and Maintenance Overview Study Session Page 3 5. What is the dollar amount of the General Fund subsidy each year since the Golf Course Enterprise Fund was discontinued to the present? What was the revenue recovery (reimbursement) percentage of each year? Staff have provided a chart and graph below outlining the FY 2011-2025 subsidies related to General Fund (GF) and cost recovery percentages. Fiscal Year Actual Revenues Actual Expenses GF Subsidy Percent Subsidized 2011-12 $297,600 $517,375 $219,775 42% 2012-13 $291,700 $523,237 $231,537 44% 2013-14 $336,700 $516,018 $179,318 35% 2014-15 $328,383 $550,409 $222,026 40% 2015-16 $263,870 $576,352 $312,482 54% 2016-17 $234,897 $616,852 $381,955 62% 2017-18 $250,433 $604,534 $354,101 59% 2018-19 $227,602 $621,659 $394,057 63% 2019-20 $166,919 $595,060 $428,141 72% 2020-21 $248,101 $599,489 $351,388 59% 2021-22 $220,129 $829,248 $609,119 73% 2022-23 $213,003 $724,556 $511,554 71% 2023-24 $287,577 $735,748 $448,171 61% 2024-25 $375,077 $827,151 $452,073 55% $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 Annual Revenues and Subsidies by Fiscal Year Revenues Subsidy Laguna Lake Golf Course Program Operations and Maintenance Overview Study Session Page 4 6. What revenue enhancement measures can we put in place to help increase revenue for the course? Can we charge non -residents more and are we doing that already after we created the non-resident fee category in the last user fee update? Daily use fees for City Park and Recreation Department programs , such as the SLO Swim Center and Golf Course, currently do not include a different fee for residents vs. non-residents. This concept was discussed and researched during the City-wide User Fee Study in 2023 and was determined that requiring ID for each individual paying an entry fee (or tee time) at th e golf course or at the SLO Swim Center would be a challenging task for staff and potential barrier for accessibility by community members. The current Resident vs. Non-Resident fee program for the Department is associated with program registrations such as summer and sports camps, swim lessons, instructional classes, and facility/field rentals. One consideration for instituting a Resident and Non-Resident rate as part of the 2023 User Fee Study for certain Parks & Recreation programs was the registration systems used for certain programs and facilities that require an address at time of registration, enabling the software system to identify the Resident or Non-Resident rate based on the zip code. The golf course reservation system does not currently have this capability. 7. The staff report states how many rounds of golf have been generated each year over the last several years. Is there any estimate for the number of total visitors to the course, including the youth programs and other special events (school groups, September Scramble, Cross Country races, etc.)? The demographics provided in the staff report were compiled from reservations and purchases to showcase the number of Tee Time reservations and driving range use. When a large event utilizes the course, such as the SLO County Cross County Race or the September Scramble, the group is charged a facility reservation fee for the entire use of the course for that time period and not a per person rate. The overall number of total users is not able to be accurately tracked, other than through individual daily sales and reservations for play. a. Do we have similar data on Sinsheimer Pool or Damon Garcia usage? (number or users/number of “swims” per year) This is similar to the Damon-Garcia Sports Complex as user group organizations reserve field space vs. paying per individual player/user. The SLO Swim Center is able to track ‘door entries’ for the majority of swim entries (2024-2025 recorded 76,898 entries , however a similar issue arises for full and half facility reservations for swim meets or water polo matches as the groups reserve facility space rather than per person entries. Laguna Lake Golf Course Program Operations and Maintenance Overview Study Session Page 5 8. Are there any other park spaces besides the three compared in this report that generate revenue? Such as the Jack House. If so, what is its cost recovery percentage? Revenue collections from other City parks are based on a variety of types of reservations related to facility and event reservations. Some of the larger parks allow the Department to rent out fields (softball, baseball, soccer/football), BBQ and picnic areas, roller rink, tennis or pickleball courts (for tournament play). The Jack House Gardens generates some revenue through wedding rentals or private outdoor events within the garden area. The most common rentals that generate revenue relate to special events and traditionally occur within Mission Plaza, Santa Rosa Park (e.g., Art in the Park), Meadow Park, and Laguna Lake Park. The cost recovery on these types of event rental reservations are difficult to account for as the types of uses and number of rentals vary. The significance of comparing the Laguna Lake Golf Course, SLO Swim Center, and Damon-Garcia Sports Complex are that all three require ‘reservation’ or a fee to utilize the property and have a controlled entry (e.g., Damon-Garcia Sports Complex can only be used through the reservation system, while other parks host drop -in play opportunities). 9. Regarding the idea of adding Disc Golf to LLGC. Can you explain how that would be worked into the program model alongside other activities at LLGC? Since we have two existing courses in the city that are free for users, I am wondering if we would charge fo r playing at LLGC? If so, what data do you have to support the idea that this would generate revenue, given the free opportunities at parks elsewhere? The addition of disc golf to a traditional golf course would be seen as complementary rather than competing activities. A variety of golf courses have incorporated this addition over the last few years. Models are in place at other golf courses that operate both within the same property area by providing time -based separation during off-peak golf hours, ensuring spatial design and safety that avoid potential damage to tee boxes, greens, fairways and common ball landing zones with clear signage in place. Disc golf courses require minimal infrastructure with removable baskets. Disc golf attracts a variety of ages and demographics as well, such as younger players, families, beginners and new users who may not be familiar with the course, some of whom may conver t later to traditional golf. The model for play would include a fee assessed with playing disc golf at LLGC, recommended at $10.00 per user, with the benefit being the quality of experience of using a professionally designed course on manicured terrain, better sightlines, and year-round playability. Both the Sinsheimer and Laguna Lake Park disc golf courses are volunteer supported and during the Spring season require consistent upkeep due to the increase in foliage growth (Parks Maintenance typically mows the fields once or twice per year.) Laguna Lake Golf Course Program Operations and Maintenance Overview Study Session Page 6 The addition of disc golf at LLGC will provide more opportunities to host tournament play, allowing general access at Sinsheimer and Laguna to remain open, and set up of league play opportunities. Staff have been in contact with the local SLO Throwers Disc Golf Club as they have provided a design and proposal for the Laguna Lake Golf Course. The proposal still needs more review by staff and be presented to the Parks and Recreation Commission before being considered. According to the most recent SLO Throwers Disc Club attendance tracking from 2023, they listed 5,247 players participated in organized games/tournaments (excluding drop in play). 10. A letter from a constituent was received stating that they would be interested in volunteering to support the course. Has the use of volunteers been considered before? The Golf Course had utilized volunteers to assist with the driving range, serve as ‘Marshalls’ on the course (help with rules and player interactions), as well as within the Pro Shop, for a number of years. The program has been on hiatus since 2020 (initially ended with the on-set of the COVID-19 pandemic) and has not been revitalized with the Pro Shop being out of service. As of November 2025, staff have been in discussion of reinstating volunteer Marshall roles potentially starting in spring 2026 and working in conjunction with the City’s Volunteer Program. Volunteer roles could assist with the driving range area, serve as Marshalls to help educate players, as well as assist during events and tournaments. Staff will keep City Council updated on this potential reinstatement of the program. 11. Do the following words on the Corporation Grant Deed dated October 29,1979 mean that the golf course property could not be used for housing or other non-park/recreation purposes? “The use of this property shall be restricted to outdoor park/recreation pursuant to the Nejedly-Hart State, Urban and Coastal Park Bond Act of 1976” The property deed dated October 29, 1979 (APN 053 -111-055) is specific to the parcel containing the driving range, BBQ/event space, and maintenance yard. This parcel has restricted use for outdoor park and recreation purposes, reflecting the requirements of the Land and Water Conservation grant. The other two parcels that encompass the golf course site are not deed restricted. Laguna Lake Golf Course Program Operations and Maintenance Overview Study Session Page 7 12. Is parcel 053-111-055 restricted to "outdoor" recreational uses or could indoor recreational uses (e.g., gymnasium, ball courts) be allowed? While the Nejedly-Hart Act itself allows certain indoor recreational facilities in other contexts; this specific parcel is subject to a recorded deed restriction that is more restrictive than the Act and limits use to outdoor park and recreation purposes o nly. The deed specifically states that the property is ‘restricted to outdoor park/recreation purposes’. As a result, indoor recreational facilities such as gymnasiums or enclosed ball courts are not permitted unless the deed restriction is formally amended or removed through the appropriate State process. Laguna Lake Golf Course Program Operations and Maintenance Overview Study Session Page 8 13. Does the following language in Resolution 2805 dated June 2, 1975 paragraph 3 commit the City to requiring the golf course revenue recovery to be at least 50%: “(The City) certifies that said agency…can finance 100 percent of the project, half of which will be reimbursed”? Resolution 2805, dated June 2, 1975, approved the City’s submission of a Land and Water Conservation Fund application for the Laguna Lake Golf Course and Driving Range Acquisition Project. The language in paragraph 3 states that the City “certifies that said agency has or will have matching funds and can finance 100 percent of the project, half of which will be reimbursed.” In this context, the “project” refers to the development and acquisition of the golf course and driving range, not the ongoing operation of the facility. This language confirms the City’s ability to fund the project and the expectation of reimbursement through the Land and Water Conservation Fund, but it does not commit the City to achieving a 50 percent revenue recovery from golf course operations. 14. Has there ever been any environmental review (EIR or Mitigated Negative Declaration) of the golf course? What chemicals are being used on the turf? How much non-recycled water does the golf course utilize per month? Are there any environmental protection addressing the runoff from the golf course to Laguna Lake and Prefumo Creek? The Laguna Lake Golf Course was first constructed in 1964, which preceded the California Environmental Quality Act (CEQA). As part of the development of the course, Prefumo Creek was realigned through the golf course at this time. This City later acquired the property in phases in the late 1970s; however, property acquisition is typically exempt from CEQA. Current environmental protections addressing runoff include the City’s MS4 Stormwater Permit from the State Water Resources Control Board, as well as City Municipal Code, chapter 12.08 (Urban Stormwater Quality Management and Discharge Control) and chapter 12.23 (Creeks, Tributaries and Riparian Corridor Regulations). Over the years, the City and its partners have implemented a variety of environmental enhancement projects at Laguna Lake Golf Course, including a series of in-stream steelhead migration passage improvements, tree planting, and invasive species removal. Several areas of Prefumo Creek within the golf course were damaged during the winter storms in 2023, and any emergency project to be completed would follow current environmental review requirements. Laguna Lake Golf Course Program Operations and Maintenance Overview Study Session Page 9 The course utilizes approximately 70% reclaimed wastewater for irrigation, supplementing 30% irrigation from the two on-site freshwater wells to reduce and flush out salts from the reclaimed wastewater treatment process which can be harmful to turf and shrubs over long-periods of time. In 2024-2025, the Golf Course utilized 10,759,232 gallons of water for irrigation, plumbing, and operations. In comparison, the Damon-Garcia Sports Complex utilized 11,160,908 gallons of water, and Santa Rosa Park utilized 5,398316 gallons of water during the same time period. The golf course maintenance staff overall approach is based on the United States Environmental Protection Agency’s Integrated Pest Management Plan (IPM). The course prioritizes cultural practices such as mowing, irrigation control, fertility balance, and improving turf growing conditions to prevent pest and disease issues before they start. Chemical applications are made only when monitoring and site conditions indicate they are necessary to protect turf health and playability. Staff utilize a fungicide program which is less intrusive or harmful to the vegetation with a focus primarily on greens, with applications to tees and fairways when disease pressure warrants. The course maintains a rotation of systemic and contact fungicides to manage resistance and provide both preventative and curative control. The Course avoids the use of non -selective or aggressive herbicides on putting greens. Weed pressure in greens is primarily addressed through cultural practices and turf density ma nagement. Spot treatments are used whenever possible instead of broadcast applications. 15. What cost-cutting (or value engineering) measures could be taken to reduce the capital costs of the club house (Pro Shop) and of the bridge? Bridge Replacement: Public Works and Parks and Recreation staff identified reuse of an existing City-owned bridge as the most cost-effective option for the cart/pedestrian bridge replacement. The bridge is currently being stored at the City’s Corporation Yard and would be hauled to the golf course for placement on new abutments outside of the creek banks to reduce future impact to the creek area and embankments. Pro Shop Rehabilitation: Staff from Parks and Recreation, Public Works, and Human Relations – Risk Management have worked directly with California Joint Powers Insurance Authority (CJPIA )and the City’s insurer to identify the most cost- effective methods for the initial mold remediation and initial flood prevention mitigation techniques during the first two phases of the project. The third phase is to release a Request For Proposals (RFP) for the preparation of design documents for the internal renovation of the Pro Shop, followed by a request for construction bids. The RFP for design services is currently being finalized and could be released within the next few months. Laguna Lake Golf Course Program Operations and Maintenance Overview Study Session Page 10 16. What measures could the City take to increase the revenue generated by golf course use, moving the cost recovery percentage to the top of the range, 60% Staff have provided a couple of program expansion opportunities for revenue generation within the staff report and will highlight those during the presentation to City Council on February 3. In addition, the critical areas to increase the number of users and grow both current programs and expand new opportunities are based on the completion of the bridge installation and pro shop rehabilitation. The lack of a bridge and fully functional pro shop negatively impact consistent year-round play, the ability to host tournaments, as well as facility reservations and rentals. The opportunity to collect monthly lease revenue from a food and beverage concessionaire will also expand revenue generation and support the community requests while utilizing the golf programs, as well as expanding even t potential. 17. How many unique visitors does the SLO Swim Center have in a year? Staff are not able to accurately identify unique users of the SLO Swim Center as the daily entry fees are not tracked as individual ‘reservations/registrations’ in the software system. Additionally, the community partnership with the Seahawk Swim Club and local school districts are classified as group uses and contracted based on hours and number of lanes of use, rather than individuals. The below chart is a breakdown of the user group breakdown during the 2024 -2025 season for the SLO Swim Center: Overall Total 2024-2025 76,898 Total Lap Swim Users 30,039 39.06% Total YMCA Member Entries 10,807 14.05% Total Recreation Swim Users 8,806 11.45% Total Warm Water Exercise Users 1,816 2.36% Total Miscellaneous Users 25,430 33.07% The total number of door entry’s does not reflect individual unique users. Some swim center users visit the facility 3-4 times per week for swim workouts such as lap swim, warm water exercise classes, or summer swim lessons. Miscellaneous users represent specialty user groups that do not enter through the City’s system including SLO Seahawks (12,555), swim meets (including spectators – 1,760), scuba classes (160), swim lessons (8,855) and high school swim practices (1,065). The miscellaneous number represents an average attendance based on the number of days per program. Laguna Lake Golf Course Program Operations and Maintenance Overview Study Session Page 11 18. Is there a potential to expand the current Pro Shop to accommodate additional uses? The current Pro Shop rehabilitation project, which is supported by insurance repair funds, is to rehab the facility to its previous floorplan with some mandatory ADA required upgrades. The original floor plan includes a small lobby/social area that was previously used for golf related social uses, as well as the opportunity to be used as a small community space for meetings and social engagements. The current Pro Shop building is 1,575 square feet, which includes the main pro shop area (795 sf), staff offices (262 sf) and con cessionaire space (424 sf). Staff anticipate that the space will sufficiently accommodate other uses, such as community meeting, small events, etc. 19. Will the Pro Shop renovations include a kitchen facility appropriate for use by a food and beverage vendor? The Pro Shop currently has the infrastructure of a full commercial kitchen (stove, vent, fridge/freezer, commercial sinks, service counter) and operated as such prior to the closing of the building. The rehabilitation project includes the kitchen space in order to support the full operations returning for concessionaire to provide food and beverage service to the users and neighboring community members.